CANADA STOCKS-TSX higher as resource shares rise

Reuters Staff

3 Min Read

* TSX up 75.26 pts, or 0.6 pct, to 12,055.36
* Materials and energy shares rise
* Risk sentiment rises on Apple earnings, U.S. Fed
* Rogers Communications earnings weigh
By Jon Cook
TORONTO, April 25 (Reuters) - Canada's main stock index rose
on Wednesday in thin trading as resource issues were boosted
ahead of the outcome of a key U.S. Federal Reserve meeting that
could give clues on the prospects for further monetary easing in
the United States.
Nearly all of Canada's 10 main sectors were higher, led by
heavily-weighted material issues, which climbed 1.6 percent. Oil
and gas shares rose 0.7 percent.
The most influential gainers included Potash Corp,
up nearly 5 percent to C$44.04, Agrium Inc, up 3.3
percent to C$86.90, Inmet Mining, rising 3.2 percent to
C$53.99, and Canadian Natural Resources, up 1.4 percent
to $31.73.
Markets expect Federal Reserve Chairman Ben Bernanke to
restate his intention to keep rates near zero throughout 2014
and possibly hint at more easing at the U.S. central bank's
latest policy meeting.
"The next major turning point would be if (Bernanke) were to
talk about the recovery doing much better and taking away a bit
of the punch bowl," said Paul Hand, managing director at RBC
Capital Markets.
"People will dissect his comments, and it could jiggle the
market."
Hand, however, cautioned that moves were exaggerated as
trading volumes remained low.
The U.S. currency fell to three-week lows, boosting
commodities priced in U.S. dollars. Oil, gold and metals prices
all rose in hopes the Fed would tip its hand to the possibility
of further economic stimulus.
Around 10:30 a.m. (1430 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was up 75.26 points, or 0.6
percent, to 12,055.36.
U.S. equity markets also firmed after technology giant Apple
Inc's surprise jump in profits led major indexes
higher.
"It gave the S&P a bit of a bounce. The response from Canada
is a little more muted, given the fact we don't really have a
(significant) tech sector," said Hand.
Weighing on stocks was a weaker-than-expected earnings
report on Tuesday from Canada's largest mobile phone company,
Rogers Communications Inc. Rogers shares fell more
than 4 percent to C$37.37 after it said on Tuesday its quarterly
profit dropped by 16 percent as rising competition hurt its
cable and wireless divisions.